jump to navigation

Recalibrating The Meaning of “Relevant” March 11, 2008

Posted by Elana Anderson in Customer Experience, Database Marketing, Integrated Marketing, Marketing, Marketing Measurement, Online Marketing.
Tags: , , , , , , ,
3 comments

Have you ever refinanced your mortgage only to be bombarded by offers to lower your mortgage rate for six weeks after you closed on your new loan? This happens because financial services companies are purchasing “triggers” from credit bureaus that indicate you have had a recent loan approval. The problem with these triggers is that they are not timely. By the time the marketing communication gets to the customer, it’s too late.

Relevance = right message + right time + right place

Perhaps it is a cliché, but it’s a good one. Too many marketers focus entirely on the message component of relevance. For these marketers, “place” is typically an outbound channel and “time” is based on the internal campaign calendar – not the customer’s needs. To be relevant, marketers must step outside the confines of the functional silo that they are responsible for and think outside in – from the perspective of the customer. In addition to targeting the message itself based upon a customer’s stated or implied needs, relevance requires:  

  • Timely reaction or response to customer actions. Although some marketers are experimenting with trigger-based communications and on-site customized messaging, the prominence of these tactics pales in comparison to the weekly or semi-weekly campaign pushes. The beauty of these tactics, however, is that they can be automated.
  • Cross-channel integration. Your customers don’t care that you are only responsible for email and not the website or direct mail and not the call center. When a potential customer clicks on a search result or an online ad and lands on your generic home page or receives an offer in the mail and calls customer service to inquire further, he expects a seamless handoff. Yet, creative elements often dominate conversations about integrated marketing rather than a focus on what the customer is trying to achieve as he traverses the channels. The result of this oversight? For the customer, it often means dead ends and unnecessary frustration. For the company, it means lost opportunities and, possibly, damage to the brand.
  • A programmatic approach. Did you know that maximizing individual campaign response might be to the detriment of overall program ROI? That’s right. Sending more messages may generate a higher response, but how many others are simply tuning out? The current industry standard in the retail sector is 1-2 email messages a week. Amazon differentiates itself in the inbox by not always being there. An email offer from Amazon might be, “A brand new Leonard Cohen CD is available. Since you have enjoyed Leonard Cohen in the past, we thought you might want to know…” This programmatic approach requires different metrics than the campaign-centric approach – for example, program engagement over time or revenue per customer (not campaign).
Advertisements

Marketers, Welcome To 2008! January 8, 2008

Posted by Elana Anderson in Customer Experience, Integrated Marketing, Marketing, Marketing Strategy, Marketing Technology, Online Marketing, Web 2.0.
Tags: , , , , , ,
2 comments

I hope everyone had a wonderful Holiday Season! My 2008 is off and running at a fast clip and, once again, the blog had to wait while I dealt with matters related to my pocketbook. But, here I am and I simply couldn’t resist the urge for my first post of 2008 to be my own set of [perhaps wishful thinking] predictions for marketing in 2008. I mean, what kind of marketing blogger would I be if I didn’t throw my two cents into the discussion?…

Before the holidays, I shared some thoughts with Barney Beal over at TechTarget. He’s just released a podcast of our discussion. So, if you want to hear my voice (including a bunch of “ums”, “you knows”, and even a few giggles), please check it out. I’m also joined by my friend and former colleague, John Ragsdale, as well as Rob Bois from AMR. My lesson learned: don’t attempt to record a podcast on your mobile device while on the go!

So, here’s my outlook on marketing in 2008:

  • No sea change events will rock the marketing world in 2008. What kind of prediction is this!?! I don’t think I’m copping out here… I recently looked back at my predictions for 2005. Short of adding more focus to social computing and Web 2.0, I could republish that document now and call it a day (of course I’m biased, but I think it’s good stuff). My point is: marketers (and industry pundits) need to avoid the urge (and thrill) to seek out the next trend to turn into hype. While it’s certainly important to keep an eye on what’s on the horizon, don’t jump into the next new thing without a clear business hypothesis regarding its potential value. And, by all means, measure against your hypothesis.
  • The Web 2.0 hype will moderate and we’ll get down to business. I’m bullish that we’re past the days when all marketers seemed convinced that they needed start a blog or spend money in Second Life. While these tactics (yes, they are tactics – i.e., not strategy) make sense for some firms, for most they don’t. There’s no doubt that social computing behavior is having a tremendous impact on the way business gets done but it’s no excuse for taking the cart (tactics) before the horse (strategy).Ok, so what is important here? Ever since I joined the industry (late 80’s), I’ve heard statements like “customer is king” and “listen to your customers.” But in those days, marketers had the bullhorn. Today, social technologies give customers a platform and a bullhorn of their own. Companies that aren’t listening run the risk of being caught unprepared (and that costs money). There’s no question that there is tremendous potential to leverage social communities, but we’re still in the early days. In 2008, we’ll start sort it out. For many companies this means sitting on the sidelines and keeping an eye on the developments. For early adopters, be clear about the objectives behind what you are doing and establish how you will measure against those objectives.
  • Marketing organizations will get a social conscience. In line with my previous comments, firms need to recognize that today’s consumers are really good at sniffing out and publicizing inconsistencies between what corporations and their brands say and how they act. In 2008 companies must take this bull by the horns – or risk getting trampled. Specifically, I mean walk the talk and align your brands and your behavior in the marketplace with what you say. Whether you are a cataloger of outdoor living that happens to send up to 40 catalogs a year to some customers on your file, a consumer goods brand that purports to promote inner beauty and self-confidence among young women while marketing other brands that paint women as objects, or a financial services firm that invests in companies with business interests in areas rife with genocide – you need to get on top of this.

  • Significant emergence of on demand marketing technology. Tired of dealing with internal technology groups? Well, some good news for marketers on the technology front. The on-demand marketing technology sector is heating up and more viable (yet still not comprehensive) software-as-a-service options are emerging to help marketers plan and organize their activities more effectively, design and launch multichannel campaigns, and measure results. For more insight on this one, see The “On Demand Marketing Suite” Is Becoming A Reality.

  • More focus on behavioral targeting. “Behavioral targeting” is definitely a term that is generating an increasing amount of interest in the online marketing sectors. But, I also find that the term means different things depending on who you are talking to. I take a broad view. Specifically, I define behavioral targeting as:

    Leveraging aggregated and individual behavior data to deliver targeted and customized content to an individual — through online ad networks, on site messaging, as well as other online and offline direct communication channels.

    If companies would only define it this way, they’d recognize that they may very well have behavioral analysis experts sitting in one part of their company while individuals in another group are struggling to figure out the basics and complaining that they don’t have the right skills or tools. I’ll focus more on this one in future posts, but I want to say here and now that it is high time to get those cool spec wearing web data gurus together with the database marketing quant jocks.

  • Companies will start to sort out the role of the CMO. OK, I couldn’t resist. I know that this is one that tends to turn up every year and maybe it’s wishful thinking on my part but, we’ve all seen the stats about the CMO revolving door and I think it’s time for marketing to step up and take ownership. As I said in my recent post about the role of the CMO, I fervently believe that the role of the CMO is to “define and lead a customer-focused marketing strategy that crosses product, channel, geographic, and even functional boundaries.” If marketing fails to transform itself into this role, I believe that the CMO title will eventually die out and marketing will succumb to a future as a tactical, services-oriented role within the enterprise. As a related aside, I was heartened today to see the news that David Norton who has accomplished so much great stuff heading up relationship marketing at Harrah’s Entertainment has been promoted into the CMO role. We need more CEOs that think along the lines of Harrah’s CEO, Gary Loveman:

“In today’s complex multi-channel marketplace, we must continue to strengthen customer relationships and deliver high-quality brand experiences across our entire portfolio.”